Egypt regulator, EBRD to issue short-term debt instruments soon

Egypt’s financial regulator is teaming up with the European Bank for Reconstruction and Development (EBRD) to launch short-term debt instruments within the current quarter, sources with knowledge told Amwal Al Ghad on Tuesday.

EFSA and EBRD are negotiating with investment banks, credit rating agencies, fixed income associations, legal advisors, and insurers on the development of a legal and regulatory framework for the issuance of short term debt instruments by Egyptian corporates both in Egypt and abroad, the sources said.

These instruments are key for the development of local money markets, with important secondary benefits for the evolution of the fixed income market and instruments generally. A further benefit is that Egyptian investors become more familiar with corporate credit investing, and on the other hand help Egyptian issuers become familiar with market-based finance.

In August 2017, the Egyptian Financial Supervisory Authority (EFSA) obtained EBRD’s approval on a joint cooperation to issue short-term debt instruments in Egypt.

The move would facilitate factoring operations in Egypt and financing of small and medium-sized businesses.

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